Ten friends who love to ski decide to pool their financial resources and equally share the cost of a one-week timeshare unit in the Blue Mountains of New South Wales.If lift lines at the ski resort become more congested when these 10 additional people start to ski, then:

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All the statements are true. A) The increased congestion due to the ten new skiers represents a negative externality because it affects other skiers' enjoyment and access negatively. B) Raising lift ticket prices can help manage the congestion by potentially reducing the number of skiers, thus addressing the externality. C) An increase in lift ticket prices acts as a Pigovian tax, which is a tax imposed to correct the negative externalities of a market activity.

Ten Friends Who Love to Ski Decide to Pool Their